politics and economy, such as security, and environmental policy. george washington university co- sponsored the event. this is just under an hour. [applause] >> it is a pleasure to welcome you to george washington to host a conversation, a preview event for the 2013 "fortune" global forum which this year will be held in chengdu, china. it brings together chief executives and global thought leaders to discuss national commerce and other issues. this year i am delighted to announce george washington university will become the first and so far the only educational partner for the "fortune" global forum. it will provide access for students and faculty and alumni

to very important content that is developed there, but also our faculty expertise. it is now a pleasure to introduce today's speakers for this preview event. henry, better known as hank, paulson, was sworn in as the 74th secretary the united states department of treasury in 2006. thehe secretary, president's leading policy advisor on a broad range of domestic and international economic issues. in 2011 he founded the paulson institute, a nonpartisan center at the university of chicago, to promote sustainable economic growth and a cleaner environment. before he entered public service, secretary paulson held several leadership positions at chief executive officer. secretary paulson has long advocated the building of a stronger relationship between the united states and china. while at goldman sachs he

established the firm's china presence and encouraging collaboration between the two largest economies has been a core purpose of the institute. he has written numerous articles on u.s.-china naturens, on the conservancy's asia-pacific council and research on chinese investment in the united states. andy serwer was named managing editor of fortune in october 2006. his responsibilities included overseeing "fortune" magazine and fortune.com with a combined readership of 11 million readers and the digital media and the conferences. under his tenure, "fortune" was named to ad age hot list in 2012. business editors and writers award for best in business general excellence. that year the magazine also

received a new york press award for the 2009 reporting on bernie madoff. he joined "fortune" in 1985 as an intern and served as reporter and editor on stories about wall street, investing, information technology, and entertainment. he is a regular guest on msnbc's morning joe and cnbc's squawk box. from 2001-2006 he was business editor for cnn's american morning. join me in welcoming secretary hank paulson and mr. andy serwer. >> thank you. thank you very much, president knapp and to everyone here at george washington university. thank you to all the students and everyone else who has come

here today. we are delighted to see you all. and also thank you, secretary paulson, for coming. and having this conversation with us. let's get right to it. the conversation today, of course, is about china and the united states relationship with china. as president knapp suggested, hank is uniquely qualified to discuss this given his role in government at goldman sachs and the nonprofit world. each one of those roles is salient in a unique way to what is going on in china and the relationship, the u.s.-china relationship. i think you will see that. let's get right to may be the most important topic with regard to china right now. mr. secretary, the changeover in leadership. i know you have said the good news is that president xi jinping is a strong leader. the bad news is that he has to

be one. i wonder if you can explain exactly what you mean by that. >> yes. particularly good to be here with all of you. andy, you stole my line. he is a strong leader, and they have a strong leadership team. we can talk a little bit about that. but i think they've got some real challenges. this leadership team is going challengesd by domestically and internationally over the next 10 years. managing that economy, the scale they have to manage it given the pace of change is just unprecedented. their current economic model, i

think, is running out of steam. i think they need to reinvent that. he has some other major challenges. he really needs to make some big changes in governance. institute the rule of law, which is very necessary for continued business, economic, and political success. the environment is a big area of concern and protests. needing to address the dirty air and the dirty water. correction, again, which is infuriating a lot of chinese, particularly over issues like property rights and so on, it is a big challenge. this leader i think it's particularly strong.

the standing committee, which of the senior leadership group of the party, the standing committee of the politburo is now seven rather than five. it will be much easier to reach consensus. xi jinping, the president, and leak and john -- and the premier are two members who are not term limited so they will be there presumably for 10 years. the other five are really good getting things done. and expectations are very high in the country. you would have to look back and just remember how high expectations here after president obama was elected. they are high because there is at least five years.

there's a lot to be done. they are high because his leadership style is very appealing, very different. he speaks extemporaneously. he has said when people meet with him some of bureaucrats aren't to come in and just read talking points. that he has really spoken out power and some of the perks. he wants to do away with so many of the motorcade that disrupt traffic. you are not to have sumptuous entertaining. when i had lunch at the embassy here a couple of months ago to say goodbye to the ambassador, i came away a little bit hungry. instead of the standard 8, 9 courses, it was four courses and a soup. he said there would be no more

hard liquor served when the military entertains. liquor company stock to drop to 10% the next day. inre's not as many people the vip waiting rooms and the casinos at macau. so, he's done some things symbolically. he understands the role the private sector has got to play. i think expectations are high. but there's a lot that needs to be done. it's really a difficult challenge running an economy, where you just take a look at what happened. never in the history of the world has there been a country of that size that has had so much change so quickly. and the expectations of the chinese people are continuing to grow. so, to continue to manage the change, and to put into place reforms on the scale in which he is going to have to do it, and the place of a vested interest -- and people are going to be fighting for the status quo -- his leadership team has his work cut out.

>> you touched on a number of economy switching him a production economy to a consumption economy, the environmental factors, the political factors vis a vis some of the neighbors. but i want to talk about corruption. when i talk to some people in china, they seem to indicate it could be problem number one. the feeling among many people in china, perhaps, is to get ahead in china you don't play by the rules. the feeling that that is something that has changed and is different from what it was 10 years ago, and that this is something that president xi needs to address and is very keen on addressing, do you think that is correct? >> let's step back and little bit and talk about rules. the reason i started off when i talk about the challenge, i talked about instituting the

rule of law. as you look at the history of china's economic reform, they moved very, very quickly. and so, to move that quickly, they use pilot programs. they encouraged innovation and various activities, which were really at head the rules they had in place. it has been a country -- it is a country ruled by men as opposed to law. that is probably an oversimplification. but i think the reason that i and so many others went as frequently as we did to china was relationships were very, very important. the country is now at a size and a scale where, for them to be successful, they are going to need to engage in institution building to be able implement, not only to have

laws in beijing and roles but to be able to implement and enforce the rules across a wide range of areas. from the environment to securities laws, and so one. -- and so on. a lot has to do with not just rules and institutions but it has to do with good governance and transparency. i really believe that the only way for this to work is both the leaders and citizens have got to be invested in the rules- based system. so, now you come to corruption. this is a serious problem and it is infuriating people. i would say the biggest source of anger -- there are a number

-- but one of the biggest sources has to do with property rights. --a civil officials municipal officials taking and selling land, which is one of the big financing vehicles for urbanization. but going after that corruption, the head of the committee and a member of the standing committee is the man we know well here. he was my counterpart at the sed and has been one of the top economic reformers in china. he knows how to get things done. >> the strategic -- >> excuse me, strategic economic dialogue. it is not an easy challenge because you have to go after it. i am sure, looking at it

systemically. andthen they will need already have had some very publicized examples in terms of government officials, good business people. this is a significant problem, and as xi has said, it is a significant problem and they are taking it on. not just in china. in much of the developing world, this is a significant problem. >> perhaps get magnified by the rate of growth. >> because china is so large. don't think there is more corruption in china than there is in india, for instance. or many other places in the world. but because china is such a big

engine in the world economy, and there's so much change there, that it is a huge issue. >> i do have questions from all of you, or some of you, that you submitted, and we will get to those. a lot of things we want to touch on first. sustainability, i mentioned, is something you are very keen on. something that is really the focus of the paulson initiative and the paulson institute. having a sustainable economic growth plan, a model, perhaps, a rising china on how to implement sustained economic growth. we hear about the environmental problems in china, mr. secretary. i am frankly a little bit surprised they haven't been addressed liquor. and i think i share that feeling with maybe some others. in fact, the problems it seemed

to be getting worse over the past couple of years, accelerating over the past couple of months. of course, the pollution in beijing, the dead pigs in the river in shanghai. and i have seen stories in the paper this week about these problems. what will it take for china to really begin to address it? it seems at some point, the cost of not doing anything will exceed the cost of sitting still -- or changing it, i should say. >> andy, as you said, the paulson institute is a think and do tank, not-for-profit. it is focused on u.s.-china because we are the biggest economies in the world, biggest consumers of energy, biggest emitters of carbon. so a lot is focused -- a lot of our focus is on having economic

growth and having it be sustainable. everything from investment in the u.s., encouraging chinese investment in the u.s. that leads to more jobs in the u.s., to leadership practices, best practices in business for the leaders of the state owned enterprises and other big companies in china that are seeking to become leading global companies. and then a big part of it is focused around sustainable urbanization. because that will be, in my judgment, the biggest economic event of the first part of this century, with another 300 million chinese to go to the cities. that is going to be a driver of economic and environmental outcomes. you are right, we need a new model of growth. but let's get to your question

specifically about the environment. because as i explain it to people, the chinese have done some extraordinary things in terms of the amount of an investment they have made in alternative sources of energy in the clean technology. the largest user of wind. they are going to be a huge user of the solar. they've got a big percentage of manufacturing capacity of solar. they've shut down many more dirty power plants than we have. but they have been winning some battles but may be losing the overall war because of the good things they've done has -- because the good things they've done have been overwhelmed by the pace of growth. they now recognize it. the public is demanding it.

and also growth -- sustainability, i think, too many people i think has just been a buzzword. i think people are beginning to really understand the growth model is not sustainable. what is another point of gdp worth when people are dying of dirty water, dirty air? there are all kinds of estimates about what the drag is on economic growth of the dirty environment. some people to leave several percentage points. but it is clearly not sustainable. and i think all of us in the world need to really rethink some things. you know, economic growth and environmental protection are not at odds, not -- opposite sides of the same coin when you look at it on a longer-term view

and you are looking at longer- term prosperity. and i think the chinese and all of us need a new economic framework that basically says that we need a model of economic growth that lets us increase our standard of living while recognizing the scarcity resources, natural resources, and not undermining the ecosystem and environment we need for water, food, the air we breathe, for energy. i think we are close to the tipping point globally in these issues. and of course, the chinese are focused on this big time. and they need a new model of urbanization. and i believe they will achieve one. that is why i am spending the amount of time i am spending

there. >> do you get the feeling i'm a though, the alarm bell has gone off recently? >> first of all, they have been focused on this for some time, they understand it. but what you see, the dirty has gotten a lot of attention. of course, the air in beijing is dirty. largely because of there is a cold winter and you've got these migrant workers who don't have the same economic benefit that others have in china -- something in the neighborhood of 300 million migrants from the farms that come to the cities and they don't have the same economic benefits, they don't have the same education benefit, and to keep themselves warm they have been burning dirty coal -- well, coal, which is the cheapest coal they can find, to stay warm. when you look more broadly -- i

spent a lot of time with people who are my contemporaries, and some of whom discount climate change. when you are looking at 50 degrees below in russia, snowing in istanbul, burning tires to stay warm in kuala lumpur, the: beijing, --the coal i think there is a serious global problem and i we can solve this from the u.s. alone.

the only way to solve it is to develop nuclear technologies that can be rolled out on a efficient basis in scale in the developing world, particularly china. >> migrant workers -- not just cars on the coal-fired power plants? >> i just say this -- because i will get to this--when you say what are the things that china needs to do in terms of economic model for reform, you start off by saying -- which is true -- they need to move toward more elastic growth and biggest services sector and less reliance on exports and heavy government investment in infrastructure and resource -- exports. but they also need to normalize the labor market, which is a tricky thing to do. but if they do it, and if they take the restrictions off of the migrant workers as they go to the city -- and if it is done properly -- there will be a construction dividend. that is probably the second thing i say they need to do. the third thing i would point

out, which we talked about, is to deal with these environmental issues that are so tough. they also need to continue the reform of the state owned enterprises. thethey need to reform financial markets, which we've talked about, and also this urbanization -- they need a new model for urbanization. where they are going to be able to continue this process on the magnitude and scale which is unprecedented and do it where they minimize some of the social, environmental, and economic stresses. a big part of it will be municipal finance. because right now they are

overly reliant on land sales. taking the farmer's land, selling it, and ok means of finance. so you need to come up with a system where mayors and governors, whether on budget that is transparent and they've got authority. so, they've got a lot to do. >> let's switch over to another difficult subject, quite frankly, which is hacking. a tricky subject when it comes to u.s. -- chinese -- u.s.- chinese relations. a couple of questions. is the chinese government behind hacking institutions in the united states, companies and governments? if so, how bad is it? u.s.f so, how should the respond? >> ok, well, let me start with a little background. first of all, i think all governments engage in intelligence gathering vis a vis other governments. so the big point of friction and tension comes when a government or a company gathers

intelligence through hacking, gathers intelligence in the trade secrets, from u.s. companies. that is the point of friction. here, i started off by saying i think it is really important for all companies to do everything they can to protect themselves against cyber theft of all kinds. and it is also the responsibility of the government to help ensure that this economic -- in short economic security. so now, let's move to china. this is a major area of tension with china, and rightfully so. we desperately need some

international, some global protocols in ways of enforcing this. we need to find common ground with china on these things. because it is in everyone's interest to make sure that economic security is maintained. now,at it, -- now, as i look same, the chinese has the interest as we do and every other nation in preserving our global economic system and not have it collapse because we can't agree on rules to enforce economic stability. this, to me, is something that is a really important area. >> so, what do you think -- just to follow up on that -- do

you think the obama administration -- the obama administration has been slow to criticize china or call china on this. but recently they did. do you think that is an appropriate response? >> i think the obama administration has clearly got a responsibility to help our companies protect their intellectual property and their trade secrets. and i think as we look at what we need in this country, we need, i think, stronger laws. we need to be able to enforce the laws. i think businesses need to do a

much better job of hardening their computer systems. so they are not as vulnerable. and they need to do a better job of reporting and attack immediately. and we need the laws and we need to enforce those laws. >> in your book "on the brink those quote and i should let everyone know you are working on a new book about china which will be out in a year or so, early next year. in the meantime, everyone should have read, and hope, your first book -- i believe your first book, am i right? "on the brink." it is about the financial crisis. one thing i pulled out that was interesting was in september of 2008, things were bad, obviously deteriorating very

fast in the united states. you notified then the vice premier to give him an update on what was going on here. you kind of warned him and he said, maybe things are ok, and you -- he said, actually, hank, maybe things could get worse. i thought was a fascinating interchange. how and how closely do the chinese monitor the u.s. economy? >> well, i think, of course they monitor it carefully. they were highly relying in -- and they are highly reliant on exports. i think the financial crisis was the first wake-up call they had. i think the second one was the european crisis. and i think now they just really understand -- what is their economy? eight dollars trillion now?

-- $8 trillion now. europe, the u.s., and japan is -- they can insulate themselves from what is happening in the broader world when they are as reliant as they are on exports. another reason why they are working so hard to do more to mastech wide growth. -- domestic-wide growth. the chinese were very aware of what was going on. they are big investors of treasury securities. they are the largest holder of our treasuries. the largest foreign holders of fannie mae and freddie mac securities. so, they had a big interest. frankly, i think the relationships we maintain and the level of trust we built up through the strategic economic dialogue, it led to a very constructive relationship. and they behaved in a very

responsible way throughout the crisis. and we communicated frequently. even to the point that when george bush made a very important decision, which was to -- when he called the global leaders meeting to deal with the crisis, he made a decision to go with the g 20. hereto for you had the g7 finance ministers, g-8, and there was a g-20 group including central bankers. he thought the g-20 group was more representative of the global economy. he rightfully had some concerns and said, would there be a constructive outcome? one of the things he asked before hand was he asked me to take a quick sounding to the

president to see whether the chinese were willing to assume a leadership role or play a constructive role and they got back very quickly. which i think then made it easier for president bush to decide to go with the g-20, which obviously made a lot of sense. >> sticking with the financial sector -- what is the number one priority in terms of reform that china should look to in the financial sector? >> to come down to number one, i think, is difficult. there are several things that they need to do. one thing i would look at to see how serious they are about reform is to say, will they open up their markets to foreign competition?

because i can't -- i don't know of a single market where there -- efficient, world-class capital markets where you don't let the best institutions come in and compete. it's hard to run a world-class institution as a joint venture. so, the argument that i made to the chinese is if you let foreign banks come in, they are going to be regulated by the chinese. they will be employing chinese professionals. and it is only by doing that you will have world-class financial markets. things that i think are important to the chinese are that right now the private sector is not getting the capital base in the current system. and having a really efficient

capital markets, you are going to come up with a more efficient allocation of capital to the or. and the other thing is investors. investors in china -- do you have a bit of a real estate bubble. when you say where can they invest their money, real estate is one of the few areas where they feel comfortable. investing. i argue, having world-class investing institutions in their will help china become a nation of investors and not just savers. right now you have over savings in china for two reasons. one, it is fear-based. safety't have adequate net, social security and welfare, and the other is, they don't get really good returns on their investments. so, interest rate

liberalization will be really important. what happens is the chinese investors have two places to go, either in real estate or you could put it in a bank savings account and not get the rate of inflation. and then that is a subsidy that it passed on to state owned enterprises in terms of lower borrowing rate but it doesn't help the private sector and it doesn't help the chinese favor or investor. interest rate liberalization would be one thing to really look at. and opening up to competition so you cannot world-class institutions. >> do you think they are likely to happen? >> i am optimistic because when you look at what they have done -- the chairman of pboc, their central bank -- he reached retirement age and then he asks to stay on.

he has been a big advocate of financial market reform. reformer,r, a real working with juan je in the old days and is now the minister of finance. the chinese sec, will be chaired by a man -- i know him well, he was chairman of the bank of china. again, i think these are all very knowledgeable professionals, pro-reformers. but it remains to be seen. because i would say anywhere have success, a certain amount of success, there is resistance to change. so, i would just simply say, we

have a very different system but we have a vested interest in our system and they have vested interest in their system, so they are going to be anti- reformers. >> i want to switch to questions from the audience. this is one from luis -- what are your thoughts about the recent apple-china dispute? do you think it was necessary for tim cook to issue a public apology to the chinese people? >> luis, i read the same "wall street journal" and "financial times" article you read. so let me put it in perspective. china is a huge market. and u.s. companies and all sorts of companies are benefiting greatly by participating in that market. so apple historically had looked at china as sort of the factory of the world.

so, apple -- computers, iphones, were assembled in china and sold in the u.s. and around the world. but what has happened, as with economic growth and greater prosperity in china, it has become a big market, and market -- end market. it is the fastest growing market. some think it is the fastest market for smart phones in the world right now. so apple got a big percentage -- got a big stake in that market. and i think what you're going to see if foreign companies -- and there's a good number of u.s. companies and other foreign companies who got

leadership positions, they are going to be under a lot of rooney. they are going -- under a lot of scrutiny and they are going to be held to a high standard by regulators. ism not saying all of this fair, but i will tell you when the chinese look at what happens to some of their companies in the u.s., they don't always think it is fair. i would say the good news for apple and for the u.s. and for the chinese and for the world is that to the fastest growing export market, that a that is growing very quickly and it isr. and what happened is they were criticized on state tv. they started off arguing that their customer service and

business norms were the same in china as elsewhere. and at the end of the day, you know, cook ended up apologizing. this is a big, important market. >> this is a question from daschle by him saying it right -- from a gw graduate student. two questions. i think you touched on the first one. do you think china needs to make political reforms in order to achieve a sustainable -- achieve sustainable economic growth? and the second -- what is the next most important economic growth engine for china in the next few decades? him would say first of all i did not talk about political reform. i do believe -- and i have always believed -- that reform, economic

freedom, greater economic integration with the rest of the world quite naturally will lead to more personal liberties, which it has overtimes, and political reform. now, the chinese political system is still evolving. the last transition, the one before this, the first time a sitting leader did not select a successor. this was the second one. understand way to china is, they look through the lens of political stability. toughfore making any decision -- whether international relations, whether economic issues, environmental issues, whatever, they are going to say, what is the path that is going to give us the greatest stability. is argument that i make speeding up economic reforms

and political reforms rather than undermining stability is going to be the quickest path to stability. and i believe that will be the case, will prove to be the case for political reform. there is a lot of discussion and debate in china how the political reforms will take place. i think the general view is that will take place first within the context of the party, and experimenting with local election, the village elections, may be giving more real authority to the national congress, the people's congress. so, i do believe it is another challenge. and i believe that for economic -- for real economic stability, it is going to continue political reform -- continued political reform is necessary.

>> what about china's military, mr. secretary? should china expand its military and make it vigor? i ask you that given the backdrop of the islands which, i believe, is the u.s. name for the islands disputed between china and japan. and of course, what is going on in the korean peninsula? give, to be with that, i you two senses on the second question. the biggest driver. i think it will be urbanization, if they get it right. i think the productivity, if somebody goes from the farm to a second-tier city and their income goes from equivalent of $40 a month to 100 and they go to a first tier city, $200. if they get it right and they get the consumption boost, that will be the biggest driver

coming up with the urbanization model of economic growth going forward. ok. so, you've got a bunch of questions in there. ok. [laughter] >> i do. i threw them all in. >> make -- whether china should continue expanding the military, what i or you think about it is irrelevant. they will keep expanding their military. and from their perspective, our military spending exceeded the top 15 countries put together. so, i always explain to them and to everyone, it is important for us to be strong in asia and around the world economically, diplomatically, and militarily. and our presence in the asia-

pacific has been important to everyone including china, because it is sure to stability. and you've got this trade and economic cross investment and growth that has benefited all of us. now you see the two troubling things that are going on. one, in the east china sea, the dispute between japan and china -- the japanese call it sent senkaku. when you look at the merits, it is easy to understand it from both sides. if you look at history there is merit on both sides. u.s.t is -- the point the makes continually to both sides

is there needs to be really good control right down to the boat commander. great channels of communication at the top political level, top military levels, because there has been a lot of tension. now, i am optimistic that the new foreign minister is a someone who speaks japanese, there is a japanese expert that he has selected to go into the role, and that both sides will be able to de-escalate. stability is totally necessary for the kinds of economic growth that asian needs and the world

needs, and for stability in the region. and then, of course, in the south china sea, that is different because this is territorial. china has territorial disputes with just about everyone. philippines, vietnam, indonesia and various countries have territorial disputes among themselves. there are, we don't take sides. we simply say, listen, it is unacceptable, as it is in the east china sea with the japanese, that these be resolved peacefully. not with force, the threat of force or coercion, that they be resolved peaceably. bothed some solutions in the south china sea and the east china sea. >> korea? how long will china let that situation continue -- >> again, i am reading the same

newspapers you are. but looking from the vantage point of watching it closely and watching it when i was treasury secretary, in one respect, although this is a more extreme the relevant -- virulent form, north korea's customary disruptive outlandish threatening behavior. this is the worst form of what we have seen, number one. we've got to case -- take it seriously when you've got a rogue state developing nuclear weapons. i look at this with your point in your question. this is a case in point of why

u.s.-china relations are so important. when i talk about it, i say it is hard to think of any major problem in the world that isn't going to be easier to solve when the u.s. and china work together and wouldn't be much more difficult to solve if we were at odds with each other. chinaill it take to get aboard, and if we get china on board, it would be easier. on this one, it has been difficult because on the one hand, the chinese are very angry at the kinds of behaviors we are seeing with kim jong-un and that regime. of the other hand, they prop them up economically because they don't want a collapsed state on their border and south

korea right on their border. the way i tend to think about it, it is highly important we be communicating regularly and doing contingency planning in terms of how to deal with the worst outcomes. because if at the highest level we have the same interest, which is peace, stability, economic growth in china, asia, and around the world, but we need to be prepared in terms of how we are going to deal with -- even if they are not high likelihood outcomes, outcomes where north korea uses force or you have a collapsed state or what have you. >> we are out of time, but i do want to ask you just one more question from the audience -- what potential role, if any, do you see for international students and asian-americans in bettering and strengthening

u.s.-china ties? >> well, that is a great question. i would just start off by saying the reason that i set up the paulson institute is because i believe there will be ups and downs in our mutual relationship based upon what the issues of the day are in beijing or in washington. and to come back to andy's point, one of the disturbing things about military relations with china is our two militaries don't like each other that much and we don't have the same level of trust as we have in the economic arena. and economic arena, there is tension, but that is the good news. havears ago we didn't economic relations with china. we had no tensions. you always have tensions with your trading partners, but if

there are problems there all kinds of trust in channels of communications. we need ways the two militaries to work together on humanitarian missions, these dialogue which we are pursuing need to work better. likehere's nothing students. and the more knowledge we have of each other, the more we know about each other, the more we trust each other, the more we will like each other. you don't make adversaries -- it is hard to become an of someone you understand. and one of the biggest problems we have is we have very different systems and very different cultures. and one of the things that the united states, what we don't do particularly well, is others -- understand others' cultures and systems. we are so proud of our system

and the way we are that we think what we have in every way is what is best for every other society. so, having american students spend time in china, get to know chinese, and vice versa. this is going quickly to -- i think it is very important for u.s.-china relations going forward. >> i think it is a wonderful know to end on. obviously we covered a lot of ground, much more to talk about but we will have to save it for another day. so, please join me in thanking secretary hank paulson. [applause] thank you to everyone here at gw. [applause]

>> tomorrow morning, a political roundtable with john feehery on the issues facing congress and then a look at the state of the u.s. housing market with the national association of realtors. we have the latest developments on north korea. it is live at 7:00 a.m. eastern here on c-span. >> today's ceremony was the culmination of more than a decade of work went remains of they were recovered. they have great information on

the height and some of the elements that they were not able to provide a dna match. >> this was a revolutionary type of ship. it would change warfare in one day. it is different from its predecessors. it was an entire ship made of iron. it was a transition from the wooden ship to the age of iron. more significant was the revolving gun turret. it was designed by john erickson who designed this with two guns. protected in a heavily armored turrets that could rotate 260 degrees. it separated the navigation from the firing of weapons. this change everything. the manager met on the field of

battle. for four hours the ships slugged it out to a drop. what changed was the course that naval warfare would take. >> this weekend, at the history of the first ironclad monitor. it is sunday at 7:00 p.m. eastern on c-span3. stan.kupdate from cause exten she said the talks have revealed that the sides remain far apart. this involved the five permanent members of the u.n. council and they suggest iran cut back on high-grade uranium. iran insists that has a right

and has no interest in using this for weapons. it also wants more relief from sanctions from any concessions in my make. earlier, the atlantic council convened a task force to talk about short and long-term u.s. strategy. it is shared by stuart to search in three u.s. administrations. this discussion is about 1.5 hours. >> i am fredekempe. -- fred kempe. no. 3 and notwithstanding preventing iran from becoming a nuclear weapon state becomes the most significant immediate foreign-policy challenge of president obama's second term. knowing the stakes and the ago,s of this some time

two years ago, at the atlantic council launched an iran task force. in anently expanded its effort to move america and its allies to a stance of something that has been overwhelmingly tactic to more strategic, taking a look at the broader context of the region, taking a look at iran's domestic politics and a lot of factors that sometimes get lost in the heat of the arguments over iran. we have been trying to provide more light. the atlantic same council board member stu eizenstat u.s. served as chairman of the task force their route. initially as co-